RoDTEP Scheme – India’s Export Tax Refund Scheme (2025 Guide)
1. What Is RoDTEP Scheme?
RoDTEP, or Remission of Duties and Taxes on Exported Products, is a flagship export promotion scheme launched by the Government of India on 1 January 2021. Its core objective is to refund hidden taxes and levies that are not reimbursed under any other mechanism, such as GST or earlier schemes like MEIS (Merchandise Exports from India Scheme).
RoDTEP covers indirect, non-creditable taxes—like electricity duty, mandi tax, fuel cess, VAT on fuel used in transportation, and embedded central/state levies on inputs—that exporters incur during the production and distribution of exported goods.
Importantly, RoDTEP is fully WTO-compliant, meaning it aligns with global trade rules and replaces older schemes like MEIS, which were deemed non-compliant with WTO norms. The shift ensures Indian exporters can continue to benefit without violating international trade agreements.
✅ RoDTEP Scheme Full Form:
Remission of Duties and Taxes on Exported Products
2. Why the RoDTEP Scheme Matters
The RoDTEP scheme is more than a refund mechanism—it’s a strategic export support tool that:
Enhances competitiveness: By refunding previously non-recoverable embedded taxes, Indian products become more cost-effective globally.
Supports MSMEs: Small and medium exporters benefit significantly as the scheme improves cash flow and profitability.
Boosts exports across sectors: From agriculture to automobile manufacturing, the scheme is applicable across a wide spectrum of Indian industries.
Brings digital transformation: It integrates with the ICEGATE portal, offering paperless, faster claim settlements through e-scrips.
Ensures compliance and transparency: Being WTO-compliant avoids international disputes and fosters long-term trade relationships.
India’s vision to become a $5 trillion economy hinges on increasing exports—and RoDTEP is a cornerstone in this mission.
3. Benefits of the RoDTEP Scheme for Exporters
Exporters across India benefit from the RoDTEP Scheme in several key ways:
🔹 1. Financial Refund of Embedded Taxes
RoDTEP refunds indirect taxes previously borne by exporters but not rebated under GST or earlier duty drawback schemes. This includes:
-
VAT on fuel used in production and transport
-
Electricity duties
-
Mandi tax on agricultural produce
-
Central excise duty on fuel
-
Stamp duties and purchase tax.
These were previously invisible cost burdens that added up silently across the value chain. With the current refund mechanism in place, they now contribute to better cash flow and higher profitability.
🔹 2. Digital E-Scrips via ICEGATE
Refunds under RoDTEP Scheme are issued as digital e-scrips on the ICEGATE (Indian Customs Electronic Gateway) platform. Exporters can:
Use e-scrips to pay Basic Customs Duty (BCD)
Transfer or sell e-scrips to other importers/exporters via ICEGATE
🔹 3. Wide Product and Sector Coverage
RoDTEP covers over 10,000 HS lines, including major sectors like:
• Textiles
• Agri and processed food
• Pharmaceuticals
• Automobiles and components
• Chemicals and plastics
• Engineering goods
🔹 4. Transparent and Efficient Process
• No physical scripts—entirely digital
• Real-time tracking of claim status
• Faster settlement via automated processing
4. How to Claim RoDTEP Benefits: The E-Scrip Process
Here’s a step-by-step guide to claiming RoDTEP:
✅ Step 1: Declare in Shipping Bill
While filing your export Shipping Bill, indicate your intent to claim RoDTEP.
✅ Step 2: Customs Verification
Once your export is completed, Customs digitally verifies your claim through automated systems.
✅ Step 3: Credit to E-Scrip Ledger
If approved, your RoDTEP credit (based on the applicable rate for the HS code) is credited to your ledger on ICEGATE.
✅ Step 4: Utilize or Transfer
You can:
Use e-scrips to pay import duties
Transfer or sell e-scrips to other eligible users
5. RoDTEP Rates 2025: Current Overview
The RoDTEP rates vary by HS code, and the benefits are calculated as a percentage of the FOB (Free on Board) value of the export.
📌 Current Rates (FY 2025–26):
Range: 0.3% to 4.3% of FOB value
Applicable across 10,780 tariff lines for DTA (Domestic Tariff Area) exporters
For exporters under AA, EOU, and SEZ, rates apply to 10,795 lines
📌 Budget Allocation FY 2025–26:
Total: ₹18,233 crore earmarked for RoDTEP
Cumulative disbursement (as of 31 March 2025): ₹57,976.78 crore
📌 Downloadable Resources:
RoDTEP Scheme Rates List 2025 PDF – Click here (DGFT Official) (update link as applicable)
6. Recent Developments & Policy Timeline
✅ February–June 2025: Temporary Pause for AA/EOU/SEZ Exporters
6 February 2025: RoDTEP temporarily paused for Advance Authorisation (AA), Export Oriented Units (EOUs), and SEZ exporters.
1 June 2025: RoDTEP reinstated for these categories after industry backlash.
✅ Industry Demands Long-Term Clarity
Leading industry bodies like:
FICCI (Federation of Indian Chambers of Commerce & Industry)
GTRI (Global Trade Research Initiative)
have requested the government to provide a 5-year guaranteed roadmap for RoDTEP to help businesses plan long-term exports confidently.
7. RoDTEP vs Previous Export Incentive Schemes
Scheme Type Coverage
RoDTEP Digital, WTO-compliant Broad: Embedded, non-GST indirect taxes
MEIS (Old) Physical scrips Focused on select product categories
Duty Drawback Reimbursed customs duties Covers only customs duties, not other taxes
Key difference: RoDTEP addresses taxes previously not covered by any scheme, offering wider relief with digital efficiency.
8. Who Is Eligible for the RoDTEP Scheme?
Any Indian exporter of goods (not services) is eligible, provided:
Exports are made from India
Goods fall under the notified HS codes
The exporter claims RoDTEP at the time of Shipping Bill filing
Note: Service exporters are not eligible under RoDTEP. Separate schemes like SEIS (Service Exports from India Scheme) may apply.
9. Validity and Extension of RoDTEP Scheme
Initially launched for 2021, RoDTEP has been extended annually.
As of FY 2025–26, the scheme is valid and active.
Exporters and policy think tanks are urging the government to extend the policy for a long-term extension till 2030.
10. Challenges and Suggestions
⚠️ Challenges Noted by Exporters:
Frequent policy changes cause uncertainty
Rate revisions are not always timely
Non-inclusion of service exports
✅ Suggestions:
Fix the minimum guaranteed rate period for sectors
Expand the scheme to service exports
Allow retroactive rate revisions for paused periods
11. RoDTEP Scheme in Regional Languages
RoDTEP Scheme in Hindi – रॉडटेप योजना का उद्देश्य निर्यातकों को अंतर्निहित अप्रत्यक्ष करों की प्रतिपूर्ति प्रदान करना है।
RoDTEP Scheme in Tamil – ராட்டெப் திட்டம் இந்தியா வெளிநாட்டு வாணிக வளர்ச்சிக்கு உதவும் திட்டமாகும்.
Regional awareness helps small exporters from Tier 2 & 3 cities better access the benefits.
12. Keywords Summary for UPSC, SEO & Trade Use
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Use these for targeted blog posts, policy notes, or UPSC preparation.
✅ Conclusion: RoDTEP Is Crucial for India’s Export Competitiveness
With digital processes, broad product coverage, and international compliance, RoDTEP has become India’s most critical export incentive scheme in 2025. However, exporters seek greater policy stability, rate transparency, and long-term continuity for sustained global growth.
As India expands its global trade footprint, schemes like RoDTEP will play a pivotal role in ensuring cost competitiveness and export-led growth.
RoDTEP (Remission of Duties and Taxes on Exported Products) is a government scheme launched in 2021 to refund hidden, embedded taxes and duties that are not covered under GST or any other existing refund mechanism. It is applicable to all sectors of goods exports, such as agriculture, pharmaceuticals, automobiles, chemicals, and more. The scheme is WTO-compliant and provides refunds in the form of digital e-scrips, which can be used to pay basic customs duties or transferred to other importers/exporters. The refund rates under RoDTEP generally range from 0.3% to 4.3% of the Free on Board (FOB) export value, depending on the product's HS code.
On the other hand, the RoSCTL (Rebate of State and Central Taxes and Levies) scheme was introduced in 2019 and is specifically targeted at textile and garment exporters, covering products under chapters 61, 62, and 63 (Apparel and Made-ups). RoSCTL refunds various state and central levies like VAT on fuel, electricity duty, and stamp duties, which are not covered under the GST regime. This scheme also provides digital scrips and offers higher rebate rates—up to 6.05% of FOB value. It is also WTO-compliant but only for the limited textile sector.
In short, RoDTEP is a broad-based scheme for all exporters, while RoSCTL is sector-specific and applies only to garments and made-ups. Textile exporters can benefit from both schemes simultaneously—RoSCTL for state and central levies, and RoDTEP for other embedded taxes not covered under RoSCTL.
